Beef prices likely hit a peak last week as Easter approaches and that is no big surprise. In addition, the Administration’s trade talks have created uncertainty as markets sort out the potential and perhaps, speculative impacts.
Feedlot margins were estimated at about $471/head with the Choice steer prices at $208/cwt., a rather modest drop from the record peak of $213/cwt. three weeks ago.
Packers fared somewhat better last week with an estimated margin of -$154/head. The Comprehensive Cutout Value was nearly unchanged from the prior week. Fed cattle slaughter for the week was 465,300 compared to 487,575 the prior week leaving plant utilization at about 80%. Cow slaughter for the week at 90,240 was down from 94,560 the prior week and 108,815 a year ago.
View the full Sterling Beef Profit Tracker for the week ending April 12.
The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.
(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)
